The UK housing market defied seasonal norms during July with good sales volumes and high numbers of homes for sale, according to Zoopla’s latest House Price Index.
The report reveals that agreed sales have increased by 8% year-on-year, which is a clear indicator of buyer confidence. Plus, there are 12% more properties on the market compared to last year, which is boosting buyer choice while demanding strategic pricing, meaning prices nationally have grown by a modest 1.3% over the past year.
However, in Yorkshire and The Humber, annual house price growth is slightly higher and currently stands at 1.9% according to Zoopla.
Zoopla also highlights how the recent relaxation of mortgage affordability testing is supporting market activity. This means those using a mortgage can now borrow up to 20% more than they could three months ago, without any change to their income or the mortgage rate offered.
Nick Talbot is head of residential at North Yorkshire based rural property consultancy, Lister Haigh. He said: “Usually the housing market eases off during the summer months, but this year appears to be an exception, with consistent levels of market activity. This is also reflected in a lot of Yorkshire’s market where we have lots of sales agreed and plenty of property for buyers to choose from.
“Crucially though, more choice makes it a very competitive market and this is a key reason why price growth remains sluggish. Therefore, sellers must seek the advice of a local expert who knows their area inside out, if they are to price accurately, reach motivated buyers and see off the competition to secure a successful sale.”
Richard Donnell, executive director at Zoopla, said: “The housing market is broadly in balance. We’re seeing healthy levels of demand and sales, but this isn’t sparking faster price inflation. In fact, more homes for sale, particularly across southern England, is re-enforcing a buyer’s market, keeping price rises in check.
“Many more home buyers are paying stamp duty since April and want this extra cost reflected in the price they pay. While mortgage rates are holding steady, less stringent affordability testing has boosted buying power and is supporting more sales despite increased uncertainty.
“At the start of the year, we predicted house prices would rise just 2%, at the lower end of forecasts for house price inflation. Prices are on track to be 1% higher over 2025, half the level forecast. Greater supply of homes for sale and mortgage rates remaining higher than expected are the key reasons for weaker growth. Low house price inflation is not a bad thing so long as there is enough market confidence for people to list their homes and make bids to buy homes.”
Earlier this year, Lister Haigh was acquired by Dacre, Son & Hartley which has a 200-year heritage and offers a comprehensive range of services from its 18 offices spanning residential sales and lettings, agricultural management, planning, and commercial investment advice. Founded in 1919, Lister Haigh has long been synonymous with Yorkshire’s rural property market.
Lister Haigh are a team of expert chartered surveyors, land, and estate agents, offering proactive and high-quality services across rural and agricultural sectors.
